Page 10 - Beaumont Basin Watermaster
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transfers of appropriative right, they impose a five-year non-use period,
                              then if the right is not used it is up for another appropriator to say they
                              need it. Then the State Water Resources Control Board (SWRCB) would
                              have a hearing to determine whether there is non-use, whether the five-
                              year rule may apply or whether there are any factors to extend the five-
                              year rule.


                              Everyone has correlative rights for the benefit of sharing the basin, and
                              it is all subject to beneficial usage. Using that as guidance, the five-year
                              rule is something the Committee may want to consider including these
                              types of contract terms in transfers in the future.

                              Mr. Montoya advised that although there is no hard and fast rule, the
                              Committee must be  mindful of this area of  equitable consideration.
                              Regarding the example of Oak Valley,  YVWD is beginning to perfect
                              some rights but if there is indication of activity on the project and the
                              rights may be perfected  in  time, law would  say that if the equitable
                              evidence is convincing then they should be provided additional time.
                              For accounting purposes, Counsel Montoya  suggested a  column of
                              quantity transferred and a column of perfected appropriative rights (the
                              date it is put to use).
                              Member Jorritsma asked about specification of certain parcels. Mr.
                              Montoya said he believes it is not meaningful that the water must go to
                              a particular parcel. Member Jaggers asked for clarification of “beneficial
                              use.” Counsel Montoya stated that case law defines beneficial use as
                              when it is actually perfected and applied to beneficial use. Chairman
                              Vela suggested it could be perfected when the meter is dropped in the
                              box. Member Jaggers pointed out the landscape of water use is changing
                              with  recent bills to reduce water  supply  both outdoors and  indoors.
                              BCVWD will be using a conservative approach to analyze water use to
                              avoid coming up short. If not accurately accounted for, that may provide
                              an opportunity  for agencies to question. Counsel  Montoya concurred,
                              noting  the perfection is upon completion of the last  act, which  is
                              application of water to a beneficial use in the amount that is equivalent
                              to the maximum quantity actually put to a beneficial use. Therefore, if
                              water remains in the appropriative column for a time that is deemed by
                              parties to be too long before it is actually perfected and vests, then other
                              appropriators can say they want some of that water.
                              Member Jaggers shared an example of a developer holding more overlier
                              right than the District believes necessary for their project. Mr. Montoya
                              indicated he believes the District could make a deal with the developer
                              to take all the overlying right as the property has other potential uses,
                              which must be accounted for. If the uses do not come to fruition over a
                              period, other appropriators could say those unperfected rights may be
                              put to beneficial use now. Jaggers  suggested a  concept  that the
                              unconsumed appropriative right goes into a pool, which would then be



               BEAUMONT BASIN WATERMASTER – COMMITTEE MINUTES 2018-08-01                          PAGE 5 OF 7

                                       Beaumont Basin Watermaster - October 3, 2018 - Page 10 of 39Basin Watermaster - October 3, 2018 - Page 10 of 39
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